Israeli Finance Minister Smotrich Announces Plans for Three Gaza Settlements

Israeli Finance Minister Bezalel Smotrich announced on June 29, 2026 that Israel has prepared plans to establish three settlements in the northern Gaza Strip. The settlement plans are awaiting approval from Prime Minister Benjamin Netanyahu before implementation can begin. Smotrich made the announcement during a visit to southern Israel, where he met with Sderot Mayor Alon Davidi.

Smotrich stated that the IDF currently controls approximately 70 percent of Gaza's land. This territorial control figure was attributed to Smotrich himself by outlets across the political spectrum, though it was not independently verified by the reporting sources.

The announcement follows an October 2025 ceasefire deal with Hamas that halted the war triggered by the October 7, 2023 attack. Of the 251 hostages abducted on October 7, 166 were released alive and 85 were returned deceased, of whom 44 were killed before abduction and 41 were abducted alive and killed in captivity. The Israeli military confirmed that some hostages died as a result of Israeli airstrikes during the war.

The Settlement Administration—a Defense Ministry body established in 2023 that manages settlement matters and advances construction in the West Bank—completed the groundwork for the three Gaza settlements under Smotrich's leadership. Center-right Israeli outlets reported that Smotrich framed the proposed settlements as serving a security function: they would act as a security belt for Israeli border communities and restore security for residents of the south.

The Times of Israel reported that Netanyahu ordered the IDF to take control of 70 percent of Gaza, while Haaretz quoted Smotrich calling for "finishing the conquest of all of Gaza"—a statement that extends beyond the settlement announcement itself and was reported only by the center-left outlet.

International reactions to Smotrich's settlement policies have been sharply negative. The Times of Israel noted that a return to Jewish settlement in Gaza is strongly opposed by the United States. The Jerusalem Post reported that Smotrich has been sanctioned by several European allies of Israel, and that his statements calling for West Bank and Gaza annexation frequently draw sharp international condemnation.

Smotrich's visit to southern Israel sparked protests and controversy in Gaza-border communities. He canceled a planned visit to Kibbutz Be'eri following opposition from relatives of Gaza hostages from that kibbutz—the Jerusalem Post specified that 32 hostage relatives protested, while the Times of Israel described general resident anger.

At Kibbutz Ein HaShlosha, which was overrun by Hamas on October 7 with four members killed, Eyal Eshel—father of Roni Eshel who was killed in the attack—heckled Smotrich during a speech. A few dozen people protested outside the kibbutz against Smotrich's participation in the event. The Times of Israel also reported that Smotrich toured new neighborhoods being constructed in Kibbutz Nir Oz, another Gaza-border community devastated during the October 7 attack, though this detail appeared only in center-right coverage.

In a podcast interview, Smotrich claimed credit for the return of all hostages and asserted that without him, the war would have ended before the Rafah operation. He stated that his red-line stance and opposition to early deals was decisive in securing the hostages' return.

Smotrich's claim of credit for the hostage returns is actively disputed. Former hostage Or Levy and critics assert that Smotrich's repeated votes against hostage deals meant he was responsible for delaying their return, not expediting it. The Times of Israel reported that Smotrich consistently opposed or gave only conditional support to hostage deal proposals throughout the war, arguing that continuing the military offensive and overthrowing Hamas was more important than securing hostage releases.

The Times of Israel noted that polls show Smotrich's Religious Zionism party polling around the electoral threshold for entry into the Knesset, suggesting his settlement announcements may be motivated by electoral considerations as he faces potential political marginalization.